The proposal is still in the work and will not be finalized until it receives approval from Voyager creditors and the judge approves the bankruptcy payout plan.
However, during a court hearing, United States bankruptcy judge Michael Wiles stated that the tentative sale would not be finalized unless it received the consent of Voyager's creditors. Additionally, Michael Wiles approved the bankruptcy payout plan, adding during the court hearing:
“If the plan fails, no portion of this agreement will be left standing.”
Additionally, there is a provision known as a "fiduciary out" that enables Voyager to terminate the agreement with FTX should any proposals be made that result in a better outcome for creditors.
The clause is frequently included in bankruptcy proceedings, allowing companies to examine greater bids until the sale is finalized, ensuring creditors get the best price possible.
Voyager has previously hinted that its users would eventually migrate to the FTX platform after the exchange obtained the winning offer on Sept. 27 at a valuation of around $1.4 billion after a two-week bidding process.
According to FTX's preliminary proposal, all priority claims would be reimbursed in full. Meanwhile, other account holders would be able to recover around 72% of the value of their frozen accounts, which had been frozen since July 1.
The figure does not include funds it may be able to reclaim as part of its lawsuit against Three Arrows Capital (3AC) after the crypto hedge fund failed to return Voyager's loan.
Any additional funds obtained as a result of this claim will help Voyager account holders to retrieve a greater proportion of their frozen accounts.
Voyager filed for Chapter 11 bankruptcy on July 4 due to liquidity concerns caused by the failure of the crypto hedge fund Three Arrows Capital.
Voyager said the FTX US proposal included the fair market value of its crypto assets as of a yet-to-be-determined date, which is valued at $1.3 billion as of Sept. 26, as well as extra consideration of at least $111 million.
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